Stock repurchases is better than an extra cash dividend. Introduction: A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

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Answer 1

Question

Chapter 17.6, Problem 17.6ACQ

Summary Introduction

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

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Students have asked these similar questions

In the absence of market imperfections and taxes, stock repurchases are sameas cash dividends. How does this change in real world circumstances and whateffect does a stock repurchase announcement have on stock price?

Why do we need to decrease the stock holdings and increase the cash orbond holdings? Explain with an example?

How do cash dividends affect the realized rate of return from investing in shares of common stock?

Answer 2

Question

Chapter 17.6, Problem 17.6ACQ

Summary Introduction

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

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Answer 3

Question

Chapter 17.6, Problem 17.6ACQ

Summary Introduction

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

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Answer 4

Question

Chapter 17.6, Problem 17.6ACQ

Summary Introduction

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

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Answer 5

Chapter 17.6, Problem 17.6ACQ

Summary Introduction

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

Answer 6

Chapter 17.6, Problem 17.6ACQ

Summary Introduction

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

Answer 7

Chapter 17.6, Problem 17.6ACQ

Summary Introduction

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 17.1 - Prob. 17.1ACQ Ch. 17.1 - What are the mechanics of the cash dividend...Ch. 17.1 - How should the price of a stock change when it...Ch. 17.2 - How can an investor create a homemade dividend?Ch. 17.2 - Prob. 17.2BCQ Ch. 17.3 - Prob. 17.3ACQ Ch. 17.3 - Why do flotation costs favor a low payout?Ch. 17.4 - Why might some individual investors favor a high...Ch. 17.4 - Prob. 17.4BCQ Ch. 17.5 - How does the market react to unexpected dividend...

Stock repurchases is better than an extra cash dividend. Introduction: A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

Solution Summary: The author explains that stock repurchases are better than an extra cash dividend, since they can be reinvested for the sake of shareholders without tax implication.

Videos

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

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Chapter 17 Solutions

Stock repurchases is better than an extra cash dividend. Introduction: A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

Solution Summary: The author explains that stock repurchases are better than an extra cash dividend, since they can be reinvested for the sake of shareholders without tax implication.

Videos

To discuss: Stock repurchases is better than an extra cash dividend. Introduction: A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

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Chapter 17 Solutions

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.